Closed in NY at $1.6162 after recovering off session lows at $1.6137 to $1.6167 ahead of the close. Rate dipped back to $1.6160 in early Asia before picking up fresh demand as session opened with tentative risk appetite, prompted by the positive opening in Asian
equities. Rate stepped its way to a high of $1.6194 before momentum faltered and allowed for a drift back to $1.6177. Fresh demand emerged into the dip ahead of the European open, taking rate to $1.6189 at posting. Focus today will be on UK GDP release at 0830GMT, the final reading of Q2 which was last revised to -0.5% from -0.7% (median -0.4%/-0.3%). US GDP due at 1230GMT. However, events in the Eurozone will have its own directional impetus, Spain 2013 budget the interest here with further unrest in Spain and Greece to be watched for on TV screens. Cable offers seen placed between $1.6195/05 (covering Weds recovery high at $1.6203, 50% 1.6268-1.6137 and 38.2% $1.6310-1.6137) with stops placed on a break of $1.6210. Support $1.6175/70. Euro-sterling was contained by stg0.7954-65 through Asia.
EasyForexNews Research Team